CHAPTER VI

BANKING TRADE AND COMMERCE

 

Contents

       

History of Indigenous Banking

       

General Credit Facilities

       

Insurance and Small Savings

       

Currency and Coinage

       

Trade and Commerce

       

Course of Trade

       

Trade Centres

       

Co-operation in Trade

       

State Trading

       

Merchants’ and Consumers’ Associations and Organs for Dissemination of Trade News

 

       

Weights and Measures

       

Storage and Warehousing

 

(A) Banking and Finance

(a) History of Indigenous Banking

Till 1763, when the Phulkain states were formed, the history of indigenous banking of the Sangrur District is not much different from the rest of the parts of the present Punjab State. During the period 1763—1948, when PEPSU was formed in 1948, the indigenous bankers such as sharafs, banias and other indigenous money-lenders were doing the business of lending money, financing foreign and internal trade. They also gave financial assistance to the rulers of the princely state of Jind during the period of stress.

 

(b) General Credit Facilities

(i) Indebtedness, Rural and Urban

Indebtedness is the state of incidence of being in debt. Rural and urban areas are different in many ways and are different in respect of indebtedness as well. Because of the very structure of urban and rural societies, borrowings in the two areas are also resorted to for different reasons and even the behaviour of borrowers differs a lot in rural and urban areas.

Rural indebtedness is the incidence of borrowing money by the people in rural areas from various sources. Different amounts of money are borrowed by the people generally for effecting improvement and development of agriculture, for the purchase of new agricultural implements, or there placement of old implements, and for purchasing fertilizers and better seeds. It is, however, found that the small farmers do not utilize the borrowed money for the purpose for which they have borrowed it; the money is used for unproductive purposes such as observance of orthodox costoms, heavy expenditure on weddings, social and religious festivals etc. for obvious reasons, recovery of loans in rural areas is not high.

Urban indebtedness refers to the incident of borrowing of different amounts, generally higher than those by ruralites, by industrialists and members of the business community from commercial banks and other Government, semi-Government and private financial institutions. These loans are seldom used for a purpose other than the one for which they had been borrowed. Because of the proper application of borrowings in urban areas, the rate of return from the loans is optimum and recovery form loans advanced in urban areas is generally satisfactory.

Rate of Interest. – The rte of interest charged in the district varies from place to place, from one lending agency to another and is related to the purpose for which the amount has been borrowed. It also varies with respect to surety or security offered.

The commercial banks in the district charge rate of interest fixed by the Reserved Bank of India from time to time. Their rates also differ from person to person and according to the amount advanced and for the purpose it is lent. The co-operative societies advance loans at the lower rates of interest ranging from 21/2 to 81/2 per cent. The amounts advanced under the State aid to industries Act, 1937, carry rates of interest at 10 per cent[P1] .

The indigenous money-lenders charge interest varying from 12 to 25 percent or even more. The unregistered money-lenders advance loans at a still higher rate of interest. Sometimes, in rural areas, the interest is calculated in kind when the loan is advanced in kind. For instance, a sahukar may advance loan in the form of a quintal of wheat and in return he recovers a quintal and a half in lieu thereof at the time of harvest. This practice is, however, gradually disappearing because of the coming up of the institutions which extend liberal financial assistance in the rural areas.

Since people have become literate in the there area adequate banking facilities available to meet their requirements, the system of usury has become outdated. However, in the remote areas where people are still backward, the money-lenders take advantage of their ignorance and helplessness by charging high rate of interest.

 

(ii) Role of Private Money-lenders and Financiers

Money-lenders. – The money-lenders have been by far the most important credit agency since time immemorial. The money-lenders or the bania still dominates the rural sector of the district economy. Though the co-operative movement has given a death blow to the money-lenders, yet they have not been eliminated altogether. Several methods of advancing loans are employed by the rural money-lenders such as loans on personal surety, against produce, land, ornaments, property, etc. the village money-lender mainly advances loans to the needy and he is responsible for a good amount of banking credit available in the rural areas of the district. Generally, he runs his grocery shop in the village and advances loans to the village people for consumption purposes. Clearance of the debt is generally done at the harvesting time. Thus, the village money-lenders still continues to be the refuge of the indigent cultivator in the times of need.

The money-lenders are now required to get themselves registered with the concerned Sub-Divisional Officer (Civil) and get a licence under the provision of the Punjab Registration of Money-lenders Act, 1938. Besides, they are required to maintain regular accounts in the books prescribed under the Act. The number of registered money-lenders in the District, as on 31 March 1978 was 79 (42 urban and 37 rural). Besides, there are a number of unregistered money-lenders.

 

(iii) Government and Semi-Government Credit Agencies

To save and loanee from the clutches of the traditional money-lenders, a large number of Government and Semi-Government agencies have been established to provide financial in rural as well as in urban areas of fair terms and on reasonable rate of interest. These agencies includes the Punjab Financial Corporation, the Khadi and Village Industries Commission, joint-stock banks, co-operative banks and co-operative societies.

The Punjab Financial Corporation provides medium and long-term loans to industrial concerns established in the district. It has powers to provide finance upto Rs 20 lakhs in the case of a public limited company or a registered co-operative society and upto Rs 10 lakhs in other cases. The rate of interest charged by the Corporation is 3 per cent above the bank rate with a minimum of 9 per cent per annum. The loans are repayable in 10 years and these are advanced hypothecation of land, buildings, plant and machinery, etc. with a margin of 40 per cent of the net assessed value. In case of Government guarantee, the margin is reduced to 25 per cent.

The khadi and Village Industries Commission meets the financial needs of the khadi and village industries for short-term loans. For setting up new industrial units and for extension/modernization of exsiting units, financial assistance is provided by the Industries Department, Punjab, under the State Aid to Industries Act, 1935, at nominal rates of interest. Loans are also advanced by the State government to the agriculturist for the purchase of agricultural implements, seeds fertilizers, tractors, etc. Taccavi loans are also given to the agriculturists by the State Government for development and promotion of agriculture. The co-operative societies advance loans against promissory notes. 14 joint stock banks which were nationalized in July 1969, have also extended the loan facilities against personal sureties, shares and other easily marketable goods.

 

(iv) Joint-Stock Banks.

In the Sangrur District, modern organized system of banking was introduced for the first time with the opening of the Jind Co-operative Bank at Sangrur in 1922, with a fully paid-up capital Rs 1,50,000. Half of the capital was provided by the Maharaja of the Jind State and the other half was subscribed by the Public. On 14 October 1950, the Punjab National Bank opened its branch at Sangrur. The Sangrur Central Co-operative bank also started functioning on 1 January 1952. With the passage of time, all the banks engaged themselves in expansion activities and a number of them opened their branches at various places in the District.

State Bank of Patiala is the lead Bank for Sangrur District. Besides, the following banks are also functioning in the district: -

1.              State Bank of India

2.              Punjab National Bank

3.              Union Bank of India

4.              Central Bank of India

5.              Indian Overseas bank

6.              Punjab and Sind bank

7.              New Bank of India

8.              Lakhsmi Commercial Bank

9.              Syndicate Bank

The Number of banking offices at various places in the District, as on 31 March 1978, is given in Appendix I, on page 184 at the end of this chapter.

The total deposits and banking credit in the district as on 31 March 1978 amounted to Rs 37.15 crores and Rs 15.35 crores, respectively.

 

(v) Post Office Saving Bank Accounts.

The post Office Saving Bank Accounts scheme was started in India on 1 April 1882. Earlier, it was known as Government Savings Banks whose foundations were laid in 1833 when the first such bank was started at Calcutta in 1833.

In 1977-78, the number of depositors who opened new accounts with the Post Office Saving Bank in the district was 62,887. The gross deposit in all the accounts with the Post Office Saving Bank in the district, as on 31, March 1978, amounted to Rs 1,87,13,012.

(vi) Co-operative Credit. – For a considerably long period, the usual sources of short-term finance of the farmers were the money-lenders who charged exorbitant rates of interest and resorted to many malpractices to cheat ignorant and illiterate cultivators. In this background, the co-operative movement was launched in this country for imparting credit facilities to the farmers.

The idea of using co-operative in India as a means of combatting rural indebtedness and supplying rural credit was suggested first in the Report of the Frederick Nicholson in 1895-97. However, a real beginning of the Co-operative Movement India was made with the passing of Co-operative Credit Societies Act, 1904.

The Balian Co-operative Credit Society in village Balian (Tahsil Sangrur) was the first co-operative society registered in the District in 1916. It has a membership of 15 and a share capital of Rs 150. Since this area comprised a major portion of the Princely State of Jind, the movement did not make much progress as the necessary laws could not be framed speedily. However, after the independence, when this area became a part of the PEPSU, the Co-operative Movement made a considerable progress. In 1956, with a merger of the PEPSU in the Punjab, the area of present Sangrur District also became a part of the Punjab, and the Co-operative Movement made further progress under the Five-Years Plans. There were, 1,993 co-operative societies in Sangrur District as on 30 June 1978. In addition, the Central Co-operative Bank functions at Sangrur with 30 branches at different places in the District.

Co-operative Credit Societies. – The Co-operative Credit Society (Bank) can be started with ten or more persons normally belonging to a village. The value of each share is generally nominal to enable even a farmer of meager resources to become a member of the society. Each of the members is fully responsible for the entire loss of the society in the event of its failure.

On 30 June 1978, there were 821 Co-operative Credit Societies (740 Agricultural and 81 Non-Agricultural) in the district. Their function is to mobilize savings and to advance loans at reasonable rates of interest to the emebers for productive purposes.

The details pertaining to membership and working of the Agricultural and Non-Agricultural Co-operative Credit Societies functioning in the district during 1973-74 to 1977-78, are given in appendices II & III at pages 186 and 187.

 

(c) Insurance and Small Savings

Insurance. – The agencies doing insurance business play an important role in tapping a portion of the public savings in form of insurance premia. With the nationalization of life insurance business in 1956, the Life Insurance Corporation of India has become the foremost and the largest single agency doing life insurance business in India. Prior to 1956, there was neither a branch office nor a chief agency of any insurance corporation in the district. Only the agents and inspectors of various insurance companies procured business for their respective insurance companies. With the establishment of the Life Insurance Corporation of India on 1 September 1956, the position became quite different. A branch of the Life Insurance Corporation of India was opened at Sangrur in 1949. Thereafter, a Development Centre of the Sangrur Branch was set up at Malerkotla on 1 April 1962. So far, there is only one branch of Life Insurance Corporation of India in the whole of the Sangrur District. The number Development Officer and Agents in the district, as on 31 March 1978, was 179 and 129 respectively. Thus in the matter of coverage by life insurance agencies, the district has lagged behind as compared to other districts of the state.

The life Insurance Corporation of India advances loans to the policy-holders, government and Semi-Government institutions/agencies for different purposes at varying rates of interest.

The following statement shows the performance of the Life Insurance Corporation of India in the Sangrur district, During 1973-74 to 1977-78:

Year

Name of branch

Number of policies

Sum assured  Rs

1973-74

Sangrur

---

2,107

29,971,000

1974-75

Sangrur

---

1,601

20,928,000

1975-76

Sangrur

---

1,876

24,468,000

1976-77

Sangrur

---

1,653

21,378,000

1977-78

Sangrur

---

1,461

19,733,750

(Source: Divisional Manager, Life Insurance Corporation of India, Chandigarh Divisional, Chandigarh and Branch Manager, Life Insurance Corporation of India, Sangrur)

 

Before the nationalization of general insurance companies on 1 January 1973, a number of private companies were engaged in the work on general insurance. Besides, the Life Insurance Corporation of India had also started the general insurance business with effect from 1 January 1964. On 1 January 1973, all private companies were nationalized and an apex body known as the General Insurance Corporation, came into existence. Functioning under the General Insurance Corporation are the general insurance wing of Life Insurance Corporation and 4 general insurance companies. The four general insurance companies are the Oriental Fire and General Insurance Company Ltd., the New India Assurance Company Ltd., the National Insurance Company Ltd. and the United India Fire and General Insurance Company Ltd.

General insurance policies of every type are issued for only one year and are renewable every year. The risks covered under the general insurance are broadly of three types, viz. fire, marine (transportation of goods) and miscellaneous insurance. Under the miscellaneous insurance, there are about 20 to 25 types of insurance including motor and all other types of insurance like fidelity guarantee, aviation insurance, burglary, personal accidents, etc. Besides the above, cattle insurance has also been introduced from 1974. It is also proposed to introduce crop insurance on experimental basis.

Small Savings. – The purpose of Small Savings Scheme is to mobilize public savings and to raise funds for financing development projects and to, simultaneously encourage the habit of thrift among the people. Originally, the Small Savings Scheme was introduce by the Government of India during the First World War (1914-18). During the Second World War (1939-45), the Government of India started the Post Office National Savings Certificates Scheme in 1943 with a view to withdrawing excess purchasing power from the people. After Independence, the scheme was made more attractive for the people by offering higher rates of interest and inculcating in them the habit to save. This was done with the objective of meeting the rising developmental expenditure for the Five-Year Plans of the country.

Small Savings Scheme is a centrally-sponsored scheme and is controlled by the Ministry of Finance (Department of Economic Affairs), Government of India. The National Savings commissioner, Government of India, with his headquarters at Nagpur, heads the National Savings Organisation and looks after the small savings work in the country. Under his direct control, there are Regional Directors, National Savings, posted in different States. The Regional Directors, National Savings, posted in different States. The Regional Director, National Savings, Punjab, is posted at Chandigarh. He has under him four Assistant Regional Directors, National Savings, At Amritsar, Jalandhar, Ludhiana and Chandigarh. In each district, there is a District Savings Officer, National Savings Scheme. In some of the important districts, however, there are two District Savings Officers. All these officers are under the direct control of the National Savings Commissioner. In the Sangrur District there is one District Savings Officer at Sangrur.

The Directorates of Small Savings have been set up in the States to ensure better co-ordination between the Central Organisation and the State Governments. The Director Small Savings, Punjab, Chandigarh, is the head of the State Government’s small Savings Department. At the district level, the District Savings Officer is the co-ordinating agency between the Central Organization and the district authorities in the promotion and growth of the movement. The main advantage to a State under this programme is that out of the money invested by the people in Small Savings, two-thirds of it is available to the State Government as interest-bearing loan from the Government of India for financing developmental activities within the State.

The number of agents who convassed and propagated for the Small Savings Scheme on commission basis in the Sangrur District, as on 31 March 1978, was 76.

The gross and net investments under the Small Savings Scheme in the district, during 1973-74 to 1977-78, are given below:

Year

Gross Investment ( Rs )

Net Investment ( Rs )

1973-74

4,41,00,000

1,43,55,000

1974-75

4,28,00,000

(-) 78,00,000

1975-76

2,60,00,000

(-) 71,00,000

1976-77

2,17,00,000

(-) 58,00,000

1977-78

3,55,00,000

  1,43,91,000

(Source: District Savings Officer, Sangrur)

(d) Currency and Coinage

The adoption of decimal coinage system by Government of India in April 1957, brought about a tremendous change in the coinage system of our country. The old rupee was divided into half a rupee (dheli or athani), one-fourth of a rupee (pauli or choani), one-eighth of a rupee (doani), one sixteenth of a rupees (anna), one-thirtysecond of a rupee (takka) and one-sixty fourth (pice) of a rupee. An anna was equal to 4 pice or 12 pies, there being 3 pies in pice. 

Decimal system of currency and coinage has been adopted by almost all countries in the world. Therefore, with a view to bringing about uniformity and to facilitating comparison with currencies of other countries of the world, decimal coinage system was introduced in the country in 1957. Now a rupee consists of 100 paise, with Coins in the denominations of 1, 2, 3, 5, 10, 20, 25, and 50 paise. Currency notes are issued in the denominations 1, 2, 5, 10, 20, 50 and 100 rupees. Earlier, currency notes were also issued in the denomination of 1,000 rupees but these have been demonetized w. e. f. 16 January 1978. Simultaneously with other districts of the Punjab, the decimal coinage completely replaced the old coinage in the Sangrur District with effect from 1 April 1964. In the initial stages of the introduction of the new currency, the public in general and rural masses in particular faced some difficulties as the old system was deep-rooted in them. To acquaint the people with the decimal coinage, the Government issued pamphlets and displayed posters all over the country to facilitate the switch-over to new system. ‘Naya paisa’, named in the beginning, is now called ‘paisa’. On the withdrawal of the old coinage from circulation, the prefix ‘naya’ became redundant and was dropped with effect from 7 June 1964.

The decimal coinage system has brought about a great transformation in the whole accounting procedure. Undoubtedly, it has made the accountancy and book-keeping much easier, quicker and simpler.

 

(B) Trade and Commerce

The main caste engaged in trade and commerce in this district is the bania. Since agriculture has been the major occupation of the people, items of export comprised mainly the foodgrains and other farm products. As the district was industrially backward, the chief items of import were cloth from Delhi and Ludhiana, bronze and brass vessels from Muradabad, Rawari, Patiala and Jagadhari. Further, gold and silver lace and glass bracelets were imported from Patiala, Delhi and Ludhiana.

Malerkotla, Dhuri, Sangrur, Sunam, Barnala and Dhanaula have been main centers of trade in the Sangrur District. Malerkotla town was previously the headquarters of Malerkotla State, and as such it was an important centre of trade and commerce. English cloth, salt, and lime were imported from Delhi, Amritsar and Lahore; while grain, instruments of survey, paper and iron utensils were exported to Ludhiana, Bathinda, Lahore and Patiala. Cotton was sent to Bombay or Karachi. Barnala was noted for its earthenware chilms, haqqis and surahis. Sunam excelled in cotton pagris, khes and Chautahis. Sangrur was very famous for gold and silver ornaments.

At present, there is no heavy industry in the District except the Malwa Sugar mills Ltd; there exist only small scale and cottage industries. Accordingly the position of this district with respect of industrial goods is very poor. However, Malerkotla, Barnala and Sunam are gradually coming up in the industrial map of the State. Malerkotla town in a pioneer in the manufacture of spare parts of sewing machines and cycle parts. Badgemaking (for Defence) and leather processing are other important small-scale industries of Malerkotla are flourishing mainly because of Mohammedan skilled workers and artisans who are concentrated in or around the town and are inclined to stick to one place only, thus the main industrial products exported from Malerkotla to other parts of the country re spare parts of cycle and sewing machines, defence badges and leather. The town of Ahmedgarh is well-known for the manufacture of khurpas, kahis and datis. Cotton textile industry is also emerging in the district.

Since agriculture is the main occupation of the people, there is brisk trade in agricultural products. The grain market of Barnala is the biggest in the district for the sale of wheat, maize and cotton. Tapa is also a good cotton market. The vegetables especially ‘methi’ and ‘gobhi’, grown around Malerkotla are sent out to many big towns of the country. This abundant cultivation of vegetables is done by the Kamboj and Arains, the two hardworking Mohammedan communities inhabiting the area.

The sum up, the main exports of the district are wheat, gram, cotton, gur, sugar, and other farm products and spare parts of cycle and sewing machines, defence badges and leather goods, and among imports kerosene, coal, cloth, iron and machinery are the main items.

(a) Course of Trade

That usual course of trade for agricultural produce in the district is form the agriculturist to the consumer through the middleman. There is no director link between the grower and the consumer. Commission agents, whole-sellers and retailers act as middle men between the grower and the consumers.

The purchasers of the grain market gather at the shop of kachcha arhitia and the sale of the commodities starts in open auction, under the supervision of the auctioneers appointed by the market committee, through the commission agents turn by turn. Such sales are conducted daily during the hours fixed for this purpose. Kachcha arhitias, who sell the commodities on behalf of the cultivators, receive commission on fixed rates permissible under the bye-laws of the market committee. The delivery of the goods is made at the shop of the market committee. The delivery of the goods is made at the shop of the kachcha arhitia and the purchaser himself arranges for their carriage to his premises at his own cost. The kachcha arhitia pays the sale price to the seller immediately after the transaction is completed.

(b) Trade Centres

(i) Regulated and unregulated markets. – In order to save the agriculturists from exploitation by middleman, the State Marketing Board has been set up by the State Government. The activities of agricultural marketing are regulated by the Board under the Punjab Agricultural Produce Markets Act, 1961, which provides for regulation of markets and formation of market committees. These regulated markets play an important role in helping the sale of commodities at fair and reasonable prices. The cultivator is now better protected against the various malpractices usually adopted earlier by traders (Beoparis) and other intermediaries. The whole of the district has been covered by the regulated markets and purchase centers to save the cultivators from unhealthy market practices and to ensure him the fair price for his produce.

In the regulated markets, all commodities brought by the growers, village traders, etc. are sold in open auction in the presence of dealers under the supervision of the auctioneers appointed by the market committee. Auction is held during the market hours at each shop turn by turn. When the auction is over, a receipt showing the weight, rate and net price after making necessary deductions is issued to the cultivator who later on showing the same, receives payment from the arhtias.

There are 10 regulated markets in the district: Sangrur, Barnala, Dhuri, Lehragaga, Malerkotla, Sunam, Ahmedgarh, Tapa, Khanauri and Bhawanigarh. In these regulated markets the main commodities for which transactions usually take place are wheat, grain, maize, paddy, oil seeds, cotton and groundnut, etc.

There is no unregulated market in the district as the whole of the Punjab State has been brought under the regulated markets.

(ii) Fairs (melas) and other Rural Marketing Centres

Fairs (melas) – A number of religious, social, recreational and seasonal fairs and festivals are held in the district at various places. Besides normal activities at a fair, many kinds of trading activities also take place at these fairs and festivals. The important fairs and festivals held in the district re mentioned in Chapter III, ‘people’.

Cattle Fairs. – These fairs are of great advantage to the agriculturists as they facilitate the sale and purchase of cattle. These are also a source of income to the Government by way of fees charged on the sale/purchase of cattle. Such fairs are held at Sangrur, Dhanaula, Sunam, Malerkotla, Bahadur Singwala, Allal, Bagrian, Tapal, Jallan, Bhawanigarh, Barnala, Lehrgaga, Moonak, Amargarh, Dhuri and Dug-Bahadurpur. A big cattle fair is held every year at Sunam on the occasion of Baisakhi; cattle fairs at Malerkotla and Dhanaula are held regularly every month.

(c) Co-operation in Trade

(i) Co-operative Marketing. – Keeping in view the malpractices suffered by the cultivators in the marketing of agricultural produce, the need for co-operative marketing was felt by the Government. Consequently, a number of co-operative marketing societies were set up at various places in the district. The cultivators can now store their produce in the godowns of these marketing societies. Previously, they had to dispose it of immediately after harvesting. These societies act as a check against malpractices such as under-weighing, unauthorized deductions and delayed payments by the arhtias.

The District whole sale Co-operative Marketing and supply Society at Sangrur was registered on 12 November 1957 with a membership of 24 societies and share of members Rs 1,250. On 30 June 1978, its membership was 261 with a share capital of Rs 1.39 lakhs. The Managing Committee of the society consisted of 10 members, in addition to three Government nominees. The society opened its 3 branches at Khanauri, Bhawanigarh, and badbar in 1969. In addition to the above, the following registered co-operative marketing societies are also functioning in the district:

Serial no.

Name of Society

Date of Registration

1

The Bhawanigarh Co-operative Marketing-cum-Processing Society Ltd., Bhawanigarh

28-8-1951

2

The Dhuri Co-operative Marketing-cum-Processing Society Ltd., Dhuri

20-4-1954

3

The Malerkotla Co-operative Marketing-cum-Processing Society Ltd., Malerkotla

18-5-1954

4

The Sunam Co-operative Marketing-cum-Processing Society Ltd., Sunam

11-1-1957

5

The Sangrur Co-operative Marketing-cum-Processing Society Ltd., Sangrur

23-4-1957

6

The Barnala Co-operative   Marketing-cum-Processing

15-11-1957

7

The Lehragaga Co-operative Marketing-cum-Processing Society Let., Tapa

15-10-1958

8

The Tapa Co-operative Marketing-cum-Processing Society Ltd., Tapa

4-12-1959

9

The Ahmedgarh Co-operative Marketing-cum-Processing Society Ltd., Ahmedgarh

29-12-1960

10

The Moonak Co-operative Marketing-cum-Processing Society Ltd., Moonak

18-1-1977

 

The co-operative marketing societies have the primary co-operative credit societies formed by agriculturists in rural areas, and also the individuals as their affiliated members, who contribute share capital and market their produce through these societies. These societies are registered under the Punjab Co-operative Societies Act, 1954.

The Central-operative Banks are the main financing agencies for the co-operative marketing societies. A number of godowns have been constructed by the co-operative marketing societies both in rural and urban areas, where storage facilities are provided to the members. The number of godowns owned by these societies in the district, as on 30 June 1978 was 531. These godowns are of much use in collecting the produce of cultivators in rural areas, and arrangements are made for its transportation to the nearest marketing society. The storage charges in these godowns are quite nominal.

The work done by the co-operative marketing societies in the District, during 1973-74 to 1977-78, is shown in Appendix IV at page 188.

(ii) Co-operative Consumers’ Stores. – There is only one co-operative consumers’ store in the district, namely, the Sangrur Central Co-operative Consumers, Store Ltd., Sangrur, which was registered on 5 August 1966. Its aims are to ensure fair distribution of various commodities to the consumers at reasonable rates. On 30 June 1978, it was running five branches (three at Sangrur, one each at Dhuri and Malerkotla) in the district. The membership of the store, as on 30 June 1978, was 3,770 with a paid-up share capital of Rs 3,52,230.00.

(d) State Trading

The State Trading Scheme in Foodgrains was introduced in the Sangrur District along with the rest of the State in 1958-59 to provide essential commodities to the consumers at reasonable rates. On 31 March 1978, there were 113 fair price shops functioning in urban areas and 290 rural areas of the district. The State Trading in foodgrains was introduced in the State during 1959. The total quantity of foodgrains purchased by the Food and Supplies Department under this scheme in the Sangrur District, during 1973-74 to 1977-78, is given as under:

Year

Quantity purchased (tones)

1973-74

1,98,201

1974-75

1,04,586

1975-76

1,36,150

1976-77

1,35,748

1977-78

1,31,253

(Source: District Food and Supply Controller, Sangrur)

(e) Merchants’ and Consumers’ Associations and Organs for Dissemination of Trade News

Merchants’ Associations:

There is no merchants or consumers’ association functioning in the district.

Marketing Intelligence. – There is no such regular agency for the collection and dissemination of market news in the district. The public in general visits the marketing centers periodically and keeps itself in touch with affairs of the market. The village traders who are regularly in touch with] the market conditions often communicate the market news to the public. In some of the regular markets, the market committees exhibit the market news on a board for the public to know the market fluctuations. Market news are also communicated to dealers at different places through correspondence and by telephone. The co-operative marketing societies receive market information cards from allied societies. The All India Radio, Jalandhar, broadcasts a daily bulletin on the rates prevailing in various grain markets of the state.

(f) Weights and Measures

The weights and measures used in the District during the British periods were as under:

(a) In urban areas:                            Maund, 20-seer, 10-seer, 5 seer, 4-seer

                                                      1-seer, Chattank tolas, mashas and ratis.

(b) In rural areas                              21/2Maund (Kachcha) = 1 Maund

                                                      11/4 Maund (kachcha) =20 seer

                                                      1 Maund (kachcha) = 16 seer

                                                      1 dhari (10 seer kachcha) =4 seer

                                                      1 Panjseri (5 seer kachcha) =2 seer

                                                      21/2 seer (kachcha) = 1 seer

The weights and measures differed not only from district the district but also from state to state in many respects. All transactions between various districts and states had to clearly spell out the relationship between the weights and measures used by the parties to a transaction. This type of trading was bound to create some problems. Therefore to standardize weights and measures throughout the country, the Government of India passed the Standard of Weights Act, 1939, which came into force in 1942 Under the Act both the systems were prescribed, viz. the Indian System i.e. tola, seer and maund, and avoirdupois systems, i.e. ib., cwts., and tons. The Punjab Weights and Measures Act, 1941 brought some uniformity in the system of weights and measures.

All these measures did serve some useful purpose but the ultimate objective of introducing uniformity in the system of weights and measures was still not fulfilled. Also, many countries of the world had adopted the metric system of weights and measures and, therefore, for the sake of uniformity in the weights and measures used in international trade and in trade within the country, the metric system of weights and measures was introduced with effect from October 1958, in accordance with] the provision of the Standards of Weights and Measures Act, 1956, passed by the Parliament and the Punjab Weights and Measures (Enforcement) Act, 1958, framed thereunder. In the case of weights, the use of old weights too was allowed for a period of two years and was discontinued from October 1960 when the use of metric weights was made compulsory. In the case of measures, a period of one year was allowed for the measures previously in vogue and, from April 1962, metric measures were made compulsory. The use of metric units also became obligatory from April 1962.

To begin with, the public in general and the rural masses in particular did experience difficulty in understanding the new system of weights and measures. To acquaint the people with the metric system of weights and measures, the Government issued pamphlets and displayed posters all over the country explaining in simple language the conversion of old measures into the metric ones. Thus in due course of time, people got accustomed to the use of the metric system of weights and measures.

There are 3 Inspectors, Weights and Measures, who verify weights, scales, etc used in the district.

 

(g) Storage and Warehousing

Scientific storage of foodgrains and other products is of a very recent origin. Earlier, the storage of foodgrains was done in bharolas or back-rooms of the residential houses, in the open or in the bags. Thus used to affect the stored stuff as the houses in the villages were rarely cemented. Though, this old way of storage is on the decline, yet it does continue alongwith the modern and scientific system of storage.

In the second half of the 20th century, there has been tremendous progress in adopting methods and techniques of scientific storage. The co-operative agricultural societies have built up godowns, with the government assistance, to facilitate storage in rural areas. The cultivators can store their produce in such godowns during the slack season the are under no obligation to resorts to distress sale of their produce. They can also get advances on the basis of their produce stored in the godowns. The co-operative marketing societies also get loans and subsidies from the Government for the construction of godowns. In the mandis, the commission agents usually provide the back-rooms of their shops for storage purposes. Such rooms are cemented and the commodities are safe from any kind of damage. On almost all important railway stations, godowns or sheds have been provided for temporary storages of goods and parcels.

Keeping in view the need for scientific storage of foodgrains and other agricultural commodities, it was decided to set up warehousing corporations in public sector as per recommendations of the All India Rural Survey Committee in 1954. Consequently, the Central Warehousing) Corporation Act, 1956. These corporations were reorganized under the Warehousing Corporation Act, 1962 enacted by the Parliament.

The Punjab State Warehousing Corporations was set up in January 1958 and after reorganization of the erstwhile State of Punjab in 1966, it was re-constituted under the Warehousing Corporations Act, 1962 with effect from 1 November 1967. The Punjab Government and the Central Warehousing Corporations are the two equal shareholders of the State Warehousing Corporation. Its main functions are to provide scientific storage at low charges administration arrange for cheap and quick credit facilities against the storage produce; to acquire and build godowns and warehouses at such places with the state as it may, with] the previous approval of Central Warehousing Corporation determine, to run warehouses in the State for the storage of agricultural produce, seeds, manures, fertilizers and notified commodities; to make arrangements for the transport of agricultural produce, seeds, manure, fertilizers and notified commodities to and from warehouses. Further, the Punjab State Warehousing Corporation acts as an agent of the Central Warehousing Corporation or of the Government for the purchase, sale, storage and distribution of agricultural produce, seeds, manures, fertilizers and notified commodities.

The Central Warehousing Corporation and the State Warehousing Corporations have acquired expertise in scientific preservation of agricultural and other products. Though, functioning on business principle, they provide services at very reasonable rates for scientific storage of agricultural produce, fertilizers and other agricultural inputs. The main benefits which have accrued to the agriculturists from the Warehousing Corporations are:

a)        Scientific storage of their produce in rat-proof, dump-proof and leak-proof godowns. Stocks remain post-free throughout the period of storage by preventive and curative measures.

b)       Cheap credit is available from the scheduled banks on the pledge of warehouse receipt issued by the Warehouse Manager in token of the stocks stored in his warehouse. This credit is available to the depositors according to credit restrictions imposed by the] Reserve Bank of India from the time to time.

c)       Agriculturist have the opportunity to get market intelligence which enables them to sell their produce at appropriate occasion.

The stocks stored in warehouses re guaranteed against damages by pests, thefts, fire, floods, etc. the warehousing corporations store the produce in hired as well as in their own constructed godowns. To encourage the farmers to deposit their produce in the warehouse, these corporations generally allow rebate on storage to the farmers. Apart from providing storage services, warehousing corporations also undertake function and chemical treatment of stocks stored in the godowns of the agriculturists to avoid infestation. Agriculturists are also trained and educated for scientific storage of their produce in their own houses, without charging anything from them.

In the Sangrur District, the Punjab State Warehousing Corporation had, as on 31 March 1978, its own constructed godowns at seven places with a total capacity 67,183 M.T; the total hired capacity throughout the district was 15,752 M.T. the following table indicates the location of owned warehouses with their dates of opening and total capacity in the district:

S.No.

Name of Warehouse

Date opening

Total capacity during 197-78 (M. T.)

1

Ahmedgarh

12/64

I, 988

2

Barnala

3/62

12,979

3

Dhuri

12/61

8,440

4

Lehragaga

2/68

7,056

5

Tapa

6/62

11,924

6

Malerkotla

5/65

7,752

7

Sunam

5/65

9,041

 

For the storage of perishable commodities like vegetables and fruit, cold storages are being set up. The cold storages help in increasing the life of perishable goods and this in turn helps the producer in getting a remunerative price for his produce, and the consumer in getting those persishable goods for longer time. The cold stores have ‘falsified’ the idea of seasonal fruits or seasonal vegetables, thanks to the cold storages, the fruits and vegetables can preserved safely for months together and the consumer can have them during any season of the year, after paying some extra charge. In the Sangrur district, a number of cold storages are being run in private sector.


APPENDIX I

(Vide page 168)

Number of Banking Offices at Various Places in the Sangrur District, as on 31 December, 1977

 

Number of Offices

Town/Village

State Bank of India

State of Patiala

Punjab National Bank

Other commercial Banks

Co-operative Bank

Total

1

2

3

4

5

6

7

Sangrur Tahsil

 

 

 

 

 

 

Bhawanigar h

…

1

…

1

1

3

Duri

…

1

1

2

1

5

Duggan

…

1

…

…

…

1

Gharachon

…

…

…

1

…

1

Longowal

…

…

1

…

…

1

Nadampur

 

…

…

…

1

1

Sangrur

1

1

1

3

1

8

Saron

…

…

…

…

1

1

Malerkotla Tahsil

 

 

 

 

 

Ahmedgarh

…

2

1

2

1

6

Amargarh

…

…

1

…

1

2

Bagarian

…

…

…

1

…

1

Bhadaur

…

1

…

…

…

1

Chaunda

…

…

…

1

…

1

Dhuri

…

1

1

2

1

5

Kup

…

1

…

…

...

1

Ladda

1

…

...

…

…

1

Lasoi

…

...

…

1

…

1

Manvi

1

...

…

…

…

1

Mimsa

…

…

…

1

…

1

Sandaur

1

…

…

…

…

1

Sherpur

…

…

1

…

1

2

Barnala Tahsil

 

 

 

 

 

 

Barnala

...

1

1

4

1

7

1

2

3

4

5

6

7

Badbar

…

…

…

1

…

1

Bhadaur

…

1

…

…

…

1

Cheema

…

1

…

…

1

2

Dhaula

...

1

…

…

…

1

Dhanaula

1

…

1

...

…

3

Hadiaya

…

1

…

…

…

1

Mahal Kalan

…

…

…

1

1

2

Sanghera

…

…

…

1

…

1

Sehna

…

1

…

…

…

1

Sekha

…

…

…

1

…

1

Talewal

…

…

1

…

…

1

Tapa

…

1

…

1

1

3

Thirkriwala

…

…

1

…

…

1

Chhajli

…

1

…

…

…

1

Dirbha

…

…

…

1

…

1

Kauhrian

…

…

…

…

1

1

Khanauri Kalan

…

…

…

…

1

1

Khanauri Madi

 

1

…

1

…

1

Lehragaga

…

1

…

…

1

2

Moonak

…

…

1

…

1

2

Sunam

…

1

1

1

1

5

Sullar

…

…

…

1

…

1

(Statistical Abstract of Punjab, 1978, pp. 588-590)


APPENDIX II

Work done by the Co-operative Agricultural Credit Societies in the Sangrur District, 1973-74 to 1977-78

 

 

Membership

 

 

 

Co-operative Year ending June

No. of Co-operative Societies at the end of year

Societies

Individuals

Share capital paid up

(Rs in Lakhs)

Loans advanced during the year

(Rs in lakhs)

Deposits

(Rs in lakhs)

1973-74    …

740

…

1,25,934

122.27

511.60

28.60

1974-75    …

740

…

1,25,934

 

132.89

31.39

1975-76    …

740

…

1,28,137

141.80

624.08

30.73

1976-77    …

740

…

1,29,383

156.91

637.04

30.18

1977-78    …

740

…

1,31,675

167.73

757.27

28.22

(Source: Assistant Registrar, Co-operative Societies, Sangrur)


APPENDIX III

Work done by the Co-operative Non-Agricultural Credit Societies in the Sangrur District, 1973-74 to 1977-78

 

 

Membership

 

 

 

Co-operative Year ending June

No. of Co-operative Societies at the end of year

Societies

Individuals

Share capital paid up

 

 

(Rs in Lakhs)

Loans advanced during the year

 

(Rs in lakhs)

Deposits

 

 

 

 

(Rs in lakhs)

1973-74    …

81

…

4744

2.05

…

0.19

1974-75    …

81

…

4802

2.07

…

0.19

1975-76    …

81

…

4802

2.09

…

0.19

1976-77    …

81

…

4802

2.06

…

0.19

1977-78    …

81

…

4802

2.06

…

0.19

(Source: Assistant Registrar, Co-operative Societies, Sangrur)


APPENDIX IV

Work done by the Co-operative Marketing Societies in the Sangrur District, 1973-74 to 1977-78

Co-operative year ending June

 

Membership

 

 

 

No. of Societies

Societies

Individual

Total

Share Capital paid up

(Rs in lakhs)

Working Capital

 

(Rs in lakhs)

Value of goods marketed

(Rs in lakhs)

1973-74  

10

7194

810

8004

11.79

152.45

1311.21

1974-75  

10

7433

817

8250

2.76

170.40

1429.37

1975-76  

10

8703

825

9533

3.07

255.99

1625.14

1976-77  

10

9803

846

10,649

13.75

235.53

1624.90

1977-78  

10

10,042

847

10,849

14.07

330.58

1913.93

(Source: Assistant Registrar, Co-operative Societies, Sangrur)

 

Contents        Next

 


 [P1]The scheme has since been abolished.